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Penalty for failure to register business with the BIR

How much is the penalty if you started business operation but you fail to register your business with the Bureau of Internal Revenue (BIR)? According to Revenue Memorandum Order No. 19-2007 issued on August 10, 2007, which prescribes the Consolidated Revised Schedule of Compromise Penalties for violations of the National Internal Revenue Code (NIRC), the criminal penalty and the amount of compromise penalty imposed for not registering a business with the BIR are as follows:

Criminal penalty imposed:
Fine of not less than P5,000 but not more than P20,000 and imprisonment of not less than 6 months but not more than 2 years.

Official Receipts and Invoices should be registered with the BIR by getting an ATP (Authority to Print) receipts or invoices. You cannot have an Official receipts/invoices if you will not register your business first with the BIR. There are also penalties for businesses who are issuing unauthorized receipts/invoices. Hence, I recommend that you register your business with the BIR to have official and authorized receipts/invoices.